Asia Freight Rates Set To Increase

Croft Cargo have now received several carrier notifications of an Ocean Freight General Rate Increase (GRI) from Asian origin points, effective from May 1st 2024.

While the level of the increase may vary by route, and from carrier to carrier, we currently understand there could be a significant increase to current ocean freight rate levels.

As with many attempts to implement GRI’s in the past, market conditions drive whether planned increases come to fruition and carrier’s stances can change right up until the last day.

However, an apparent increase in volumes, coupled with uncertainty in the Middle East and the recent seizure of the MSC Aries, suggests that a GRI could be successfully implemented.

Therefore, this bulletin is to ensure that our much-valued customers have advanced warning of carrier plans.

Iran/Israel Conflict Impacts Air Cargo

Air cargo from Asia has already been impacted by Iran’s missile and drone attack on Israel at the weekend. With several flights and services in and out of the Middle East cancelled, and many Far East services being rerouted away from the perceived danger area.

Capacity is currently under pressure and we are seeing freight rates on many Asia services starting to spiral upwards. This could continue until the geopolitical situation improves, and is not helped by the flooding and closure of Dubai airport’s runways yesterday, which is a major gateway for Asia/Europe services.

The team at Croft are monitoring developments closely. If you have concerns about any upcoming shipments, then please do not hesitate to contact us.

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